Canadian Greenback, CAD, USD/CAD, AUD/CAD Speaking Factors: It’s been one other bearish begin to the week for the US Greenback, a
Canadian Greenback, CAD, USD/CAD, AUD/CAD Speaking Factors:
It’s been one other bearish begin to the week for the US Greenback, and in USD/CAD, this has helped the pair to push again all the way down to a key space of assist. That is across the identical space that costs have been buying and selling at after I final wrote on the matter; and again then, I famous the overall penchant in the direction of CAD-strength as USD-weakness remained a main theme. That state of affairs has dissipated a bit because the latter portion of final week introduced in a fast stumble upon USD/CAD; however that transfer has largely been priced-out by means of this morning’s open with worth motion returning on to this key spot of assist on the chart.
USD/CAD Eight-Hour Value Chart
Chart ready by James Stanley; USDCAD on Tradingview
USD/CAD Greater Image: 1.3000 Looms Giant
Taking a step again on the chart, and this present zone of assist highlights quite a few latest inflections. This stage is taken from the 88.6% retracement of the Fibonacci retracement drawn from the December low as much as the March excessive. This worth began to return again into play as assist in August, with one other spherical of assist by means of mid-September. Most just lately, this confirmed up as some short-term resistance final week however as famous in that prior article, the backdrop may very well be tough for bearish continuation given the lurking assist just under worth motion.
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Constructing Confidence in Buying and selling
The 1.3000 stage has considerably of a historic high quality within the pair. This psychological stage was teased all through the second half of final 12 months, however lastly got here into play on the ultimate buying and selling day of 2019. And for the primary week of this 12 months, worth motion frolicked sub-1.3000 for some time; however bulls rapidly started working and pushed costs larger for the following two-and-a-half months.
To study extra about psychological ranges, try our DailyFX Schooling part.
That 1.3000 stage got here again into play in early-September however, equally, sellers couldn’t muster a lot continuation and costs rapidly bounced from that psychological stage. With that worth now lurking so near present costs, are bears going to have the ability to elicit one other take a look at?
USD/CAD Every day Value Chart
Chart ready by James Stanley; USDCAD on Tradingview
AUD/CAD Breaks Down
Given proximity to longer-term assist in USD/CAD, CAD-bulls might wish to look elsewhere and one potential choice checked out final week was in AUD/CAD.
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Traits of Profitable Merchants
AUD/CAD had taken on tones of a descending triangle, with horizontal assist holding amidst a collection of lower-highs. That setup has crammed in and costs have damaged all the way down to a recent low. Comply with-through helps may very well be sought out round .9272, .9184 after which round .9076.
To study extra about descending triangles, try our DailyFX Schooling part.
AUD/CAD Eight-Hour Value Chart
Chart ready by James Stanley; AUDCAD on Tradingview
— Written by James Stanley, Strategist for DailyFX.com
Contact and observe James on Twitter: @JStanleyFX